Customers

Diverse customer base

solutions by stc leads the ICT market in the KSA with a 18.8% share and a CAGR of 22% (3-year) of net revenue: the highest among systems integrators across the Kingdom. The Company offers comprehensive solutions across (i) Core ICT services, including systems integration, communications and internet, (ii) Information Technology services and managed operational services, including outsourcing and managed services, (iii) Digital services, including cloud services and Cybersecurity Integration. The customer base comprises mainly government and semi-government, private sector and institutional customers, as well as Small and Medium Enterprises (SMEs). Net revenues from government and semi-government customers in 2021 was 54% of the Company’s total net revenues, and revenues from private sector customers for the year accounted for 17% of the total net revenues.

Given on the following pages are details pertaining to our total number of customers, which have been subdivided into a number of categories.

Customers by business line

Only customers with whom solutions by stc won a purchase order (PO) in 2021 were counted.

As the country’s market leader in ICT, the Company is present in all geographic regions. In 2021, the Company won 1,453 opportunities across its business lines.

Focus on customer relations

The Company considers customer relations as a key strategic imperative and takes a 3600 view of the customer journey, covering all related stakeholders. This encompasses the entire value chain from product development, product and service partner ecosystem, suppliers, employees, right through to creating a delightful customer experience. The Company is of the firm view that its success and continued growth are dependent on its identification of customers’ current and emerging needs, monitoring changes in ICT and related technologies and trends, thereby offering solutions that are relevant, up-to-date, cost-effective and meeting the highest performance criteria. The Company’s growth strategy is focused on enhancing its offerings through innovation and using the very latest in technology that meet customer’s needs. At the vanguard of the Company’s customer engagement effort is the sales force, which has been divided into distinct teams serving the government sector and private sector, which are in turn subdivided into specific industry or technology related teams.

Understanding customer needs

As part of the Company’s overall strategic direction, current and evolving needs of customers are assessed through in-depth market research, which enables it to identify new markets; diversify its customer-base, including SMEs; develop cross-selling opportunities; expand sales channels, and enhance its offerings, including off-shelf products, as well as bundling digital and connectivity devices.

In addition, customer satisfaction and experience are captured across multiple touchpoints and the most important KPIs shared with the relevant solutions by stc executives to make sure that the issues are addressed in a timely and effective manner. Customer experience is further enhanced by managing and governing data in the context of customer relationships, thereby offering a clear conception of customers’ needs.

The Company also serves as a one-stop-shop to customers by offering multiple product and service lines, as well as cross-selling across business lines which cover a broad spectrum of customers’ needs. As the country’s market leader in ICT, the Company is present in all geographic regions. In 2021, the Company won 1,453 opportunities across its business lines, reinforcing the Company’s strategy of providing a range of services to clients.

Our clients are provided with a per-product Service Level Agreement (SLA) customized based on each product domain and its nature with the purpose of delivering exceptional services to customers, monitoring and acting on performance metrics to ensure expectations and obligations are fulfilled. As we strive to exceed our customers’ expectations, we keep an eye on the SLA performance results as they help us to gain insights on enhancing our products, introducing new features, as well as adopting strict internal KPIs.

Frequent surveys are also conducted to assess the overall customer experience across their lifecycle, and the results shared with them for further feedback. Surveys are carried out to monitor the level of success of each transaction, in addition to analysis of customer bases in terms of business units, verticals, expenditures, services used, etc. Appraisal of the customer’s value to the business is undertaken in terms of the sector, service provided, net revenue, and net revenue as a percentage of Company’s total revenue.

Enhancing customer satisfaction

Customer satisfaction is a top priority – one that is integrated into solutions by stc’s LEAP strategy. In order to ensure our products and services align with the needs of our customers, we have put in place a Delivery Excellence Program.

As part of the program, we review and enhance our internal practices for all project delivery activities. We also assess the quality of our relationships with customers, partners, and subcontractors and implement new initiatives to strengthen these relationships.

The following was accomplished under the Delivery Excellence Program. The achievements noted below are testament to the sound relationships we have established so far:

• TM Forum Certificate - for demonstrated conformance in “Resource Capability Delivery“ and “Customer Problem Handling”
• Selected as a finalist for the PMI Project of the Year Award for its mega project “Dammam-7 Supercomputer”. Only two other companies have been chosen worldwide
• Received “Highly Commended Status” for our project which was part of Glotel Delivery Perfection

solutions by stc also uses the following platforms to manage, monitor, and measure customer and partner relationships:

• ERP Platform: for raising invoices and tracking payments
• CRM Platform: covering all customer oriented and sales related activities
• Azer: for customer service management on an end-to-end basis
• Sahel: customer-facing tool for outsourced employees to access Admin/HR functions
• C Zone: for customers to track their projects and outsourced employees. C Zone may be merged with Sahel at a future date.

Supporting customers during the COVID-19 pandemic

During the height of the pandemic, the Company introduced a number of initiatives with a view to ensuring business continuity and streamlined operations. This included remote working for all staff to ensure delivery of all critical projects within agreed deadlines and costs. All staff were vaccinated in due course and instructed to follow guidelines and precautions announced by the Ministry of Health. Regular meetings were held with clients to assess their urgent requirements and deliver projects on time.

Impact of IPO on customer relationships

The IPO has served to strengthen the position of solutions by stc as the market leader and the partner of choice for customers. It has also strengthened the customer relationship strategy, offering a renewed focus on an all-encompassing 3600 view of customers’ experience and relationships, resulting in the implementation of best practices and benchmarks to ensure
best-in-class delivery and solutions.

Reliable systems and processes

Establishing solid systems is key to ensuring our customers’ data is secure and their concerns are resolved in a timely manner. solutions by stc has garnered recognition both locally and internationally for maintaining high standards with regard to Operations and Managed Services (MS). The Company has gained the trust of its customers across the Kingdom because:

• It has 300 FTEs with +465 Technical Certifications
• It owns the biggest cloud environment in the KSA
• It operates Tier IV data centers in Riyadh and Jeddah with a combined area of 4,000+ square meters
• It has a round-the-clock Network Operations Center managing the most MS business in the KSA
• It has field ops across the Kingdom with 20 dispatch locations to deliver solutions by stc services
• It owns the biggest unified communication platform hosted by Cisco in KSA
• It owns the first operations center to obtain HIPAA certification in KSA
• It is managing 222 Managed Services Projects serving multiple segments
• It achieved all Division’s KPIs with high score value
• It operates one of the top 10 Supercomputers in the world

The recognition received was made possible because the Company has put in place a sound support model which consists of:

• Incident Management 909 – Azer
• On Site/Remote Support
• 24/7 Support
• Proactive Support
• Review and Escalation
• Customer Review and Satisfaction Survey
• Quality Analysis and Operation Relations Management (ORM)

The recognition we received is as follows:

Customer data and technology disruptions

As an IT services provider, the Company collects and processes personal data and other data from present and prospective customers. The Company rigorously adheres to the KSA laws and regulations relating to data protection, data localization, and Cybersecurity Integration requirements.

The Company is aware that any failure or breakdown of its information and technology systems and data center operations, including network, storage, and server operations, could impact the Company’s ability to optimize its services to customers. This could result in a significant slowdown in their operational and management efficiencies, results of operations, and financial position. The related safeguards that have been put in place are in compliance with the KSA laws and regulations.

Below are the resolutions KPIs for service availability.

KPI	Numbers	Resolved within KPIs
Number of incidents resolved within product resolution	121,309	99.9%
Total number of incidents	121,314
Number of service requests fulfilled within product fulfilment	11,260	99.9%
Total number of fulfilled requests	11,263

Partners

Ensuring the highest quality of its customer offerings, solutions by stc is diligently focused on developing and maintaining robust partner ecosystems, and cultivating strong bonds with its suppliers, including global technology vendors. The partner ecosystem consists of over 150 global and local technology innovators. The Company generates the highest revenue for major technology providers such as Cisco, Fortinet, PaloAlto, DellEMC, VMWare, IBM, Huawei, and Microsoft. The Company acts as a value-added reseller for SME customers through its relations with such providers. Leveraging its relationship with stc, the Company is able to access specific opportunities and large projects.

The Company’s Partnership and Alliance Department has devised its key objectives to address four domains: Engagement Enhancement; Revenue Enhancement; Capability Enhancement; Increase Market Reach:

Robust partner and supplier ecosystem

solutions by stc obtains a range of products and services from reputed global technology vendors, which are integrated into the solutions offered to customers. Strategic partners are measured periodically using the “Partners Ranking Process”, which evaluates their performance based on five main criteria:

• Revenue
• Number of transactions – which indicates level of business engagement
• Profitability - which help us to maneuver among partners delivering similar technologies
• Investment and incentives - that help us to evaluate partners’ spending on marketing activities that improve leads generations, as well as incentives that help us improve our margin and profitability
• Subjective criteria depend on answering following three measures:
• Does vendor technology align with solutions by stc objectives?
• Is the partner considered a leader in aligned technologies?
• Is there a high level of communication and trust?

In addition to this Process, the Company conducts bimonthly business plan reviews, which provides a 3600 view of partner relationship based on a range of similar criteria.

Total purchases from top 10 suppliers were SAR 2,076,585,010, SAR 2,018,897,890, and SAR 2,468,905,306 in 2018, 2019 and 2020, respectively. Based on the total value of purchases for 2018-2020 (SAR) the Company’s Top Ten (10) Suppliers for the financial years ended 31 December 2018, 2019 and 2020:

• Microsoft
• Cisco
• HPE
• CRAY Inc.
• Oracle
• DellEMC
• Juniper Networks
• Huawei
• Ericsson AB
• IBM

Among these, the relationship with Cisco and HPE dates back to 2010 and IBM dates back to 2011.

The General Authority for SMEs (“Monshaat”) is a useful resource for screening suppliers. By utilizing this resource, we are also contributing towards the goals set out in Vision 2030, which envision a greater contribution by SMEs to the market. However, we also conduct our own research when screening suppliers.

The Company is focused on formulating community engagement and involvement programs which will lead to transformational changes among the employees, customers, and the greater community, focusing on strengthening its relationships with all stakeholders.

Sustainability

Vision 2030 of the Kingdom of Saudi Arabia is built around three primary themes: a vibrant society, a thriving economy, and an ambitious nation. In keeping with this vision, solutions by stc, began its transition from conventional Corporate Social Responsibility (CSR) to formalized and strategic sustainability practices, incorporating salient aspects of the UN’s Sustainable Development Goals (SDGs) as well. This was envisioned to create the required transformation in the economy, people, and planet, while meeting stakeholders’ expectations. The Company has formulated a strategic action-plan within the framework of Environmental, Social, and Governance (ESG) principles to accomplish these farsighted and far-reaching objectives. Achieving a greater Social Return on Investment (SROI) will form the ideological framework of all initiatives undertaken in this regard. This will help solutions by stc to identify more efficient and effective uses of its capital and other resources to create greater and lasting value for all stakeholders, including a vastly enhanced quality of life for the wider community in addition to enriching the environment.

Considering the broader implications of the ICT industry in the evolution of the Kingdom’s economy and its people, solutions by stc has a significant role to play in achieving such goals. The Company is fully focused on formulating community engagement and involvement programs which lead to transformational changes among the Company’s employees, customers, and the community. Achieving greater equity for the brand and the Company’s reputation also form an important aspect of this program. This will go a long way in terms of developing strategically important skills and domain expertise within the Company, while strengthening its relations with all stakeholders, as well as the wider community. Such programs also have the broader, beneficial objective of embedding a deeply entrenched culture of ethics, integrity, sincerity, and empathy, while also being regarded as a model corporate citizen, whose actions are worthy of emulation.

Among external stakeholders, marginalized communities will form the main focus of attention for the Company. The creation of ethical business practices and adopting a Social Return on Investment (SROI) approach and SROI methodology will be rigorously followed. The objective is to bring about a cultural shift among businesses and the adoption of sustainable practices based on the “Circular economy” approach. This will entail an unwavering focus on the three principles required for making the successful transition to a circular economy: eliminating waste and pollution, circulating products and materials, and the regeneration of nature. This will offer a contrasting and more beneficial alternative to the linear economy model followed by most businesses.

During the course of 2022, the Company is committed to following a strategic CSR program based on sustainability practices that create lasting benefits to the environment and society. The Company will use social investment methodologies and SROI tools for planning, implementing, and monitoring the impact and viability of projects. This will include establishing the scope and identifying key stakeholders, mapping and evaluating outcomes, establishing the impact, and embedding best practices within each project. Having a shared value-based approach with internal and external partners, along with integrating stakeholders with continuous communication and learning will result in a robust and holistic approach to improving outcomes. Our expertise in ICT, especially a data driven approach, will be invaluable to ensuring better, measurable, and durable outcomes.

The Company places strong emphasis on the active engagement of employees in its CSR projects. This involves comprehensive training and skills development on the subject through the HR Department, clearly identifying and communicating the goals of each project and the envisaged outcomes, monitoring and sharing the achievement of goals, and creating a sense of ownership of the project in addition to sharing the outcomes with the outside world. This will be carried out with external collaborators within the KSA in facing the critical challenges of the projects.